According to the FDA, generic medications can cost, on average, 80 to 85 percent less than the brand-name equivalents. Brand-name prescription drugs are typically more expensive because of the higher initial costs to develop, market, and sell a brand-new prescription drug.
Brand-name prescription drugs are distinct pharmaceutical products marketed under a unique trade name. They benefit from patent protection, giving manufacturers exclusive rights for a specific period. A pharmaceutical company that develops a brand-name prescription drug will file for a patent that prohibits other manufacturers from producing and selling the medication for a set time period. Other prescription drug manufacturers are only allowed to make generics after the patent or exclusivity rights expire.
A generic prescription drug is equal to a brand-name prescription drug in “dosage, safety, strength, how it is taken, quality, performance, and intended use.” In other words, the “generic” and “brand-name” labels are primarily related to how the prescription drug is sold to consumers, not differences in active ingredients, usage, or how it works on the patient. This applies to both prescription and over-the-counter medications.
The FDA (U.S. Food and Drug Administration) ensures equivalence between generic and branded medications by requiring generic prescription drug manufacturers to demonstrate “bioequivalence.” This involves proving that generic prescription drugs have the same active ingredient, strength, dosage form, and administration route as their branded counterparts. The FDA carefully reviews extensive data provided by manufacturers, including formulation and clinical study details, to confirm that generic prescription drugs behave similarly in the body. This stringent regulatory process guarantees that FDA-approved generic prescription drugs offer comparable therapeutic effects to branded prescription drugs, maintaining high standards of safety and effectiveness.
It is our job to keep costs down, including costs related to prescriptions. As a member, you can assist in this effort by making sure that your doctor is prescribing generics whenever possible. Don’t wait until you are at the pharmacy to ask about generic alternatives. Discuss this with your doctor upfront. Let your provider know that you prefer generic prescription drugs over brand name higher cost medications.